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he future earnings, dividends, and common stock price of Callahan Technologles inc, are expected to grow 54 per vear, Caliahan's common stock currently selis for

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he future earnings, dividends, and common stock price of Callahan Technologles inc, are expected to grow 54 per vear, Caliahan's common stock currently selis for $27.25 per hare; its last dividend was $2.00; and it will pay a $2.10 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round vour answer to two decimal piaces. 4h b. If the firm's beta is 1.9 , the rikk 2 e rate is 3%, and the averoge return on the market is 13%, what will be the firm's cost of common equity using the CAPN approach? Round your answer to bwo decinal places. c. If the firm's bonds eam a roturn of 12%, based on the bond-yeld-plus-risk-premium approach, whst will be f, Use the fudgmental risk premium of 4 w, in your calculations. Round your answer to two decirnal places. d. If you have equal confence in the inputs vsed for the three approaches, what is yeur estimate of callahar's cost of common equity? Do not round intermediate calculations. Round vour answer to two decimal placis

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